Professional Documents
Culture Documents
Marketing & Sales Vision India - 2011 Consumerism Rising aspirations and standard of living Online Social networks/ news group/ chatrooms E. commerce shopping online Media influence on children/youth - Licensed merchandise
Transition from Traditional living to Modern living Home envir. Time pressure- busy lifestyle Home a comfort zone A/c/ Durables/ Gadgets/Gym/ Home Theatre. Social Clanning/Network frequently visits to Food joints/ courts/ cafes Demographic Family life cycle Life changing events Cultural-Social Environ. Nuclear / unitary family structures Indulgence & escape from routine Cultural values & attitude - changes
Marketing Head
MR
Promotion
RSM
BM / DSM / AM SR / Sales Person / Sales Tranees
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People-oriented
Problem-solvingoriented
Take it or leave it
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Selling skills help the salesperson ad the sales manager to effectively utilize the selling time, to understand the customer better, and generate higher returns to the organization.
Problem-solving skills Communications skills
The Communication Process Communication is the exchange of idea and information between two parties. The communication process is defined as a set of activities and systems integrated for an exchange of ideas, concepts, information, and knowledge between a sender and a receiver through alternative channels. In this process the receiver decodes the message and sends feedback to the sender so that the sender can know the effectiveness and response of his
l Eye contact
l Space distancing Listening Skills A good listener welcomes new ideas, and stays informed, up-to-date, and out of danger in an organization. Good listening also enhances the impact of what the salesperson speaks to the customer, and increases the ability to negotiate with customers.
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Interpretation
Paraphrasing
Remembrance
Clarifications
Evaluations
Empathetic listening
Response action
Active listening
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Barriers to Listening There are various barriers to listening that include physical and mental barriers. Prejudgment is the most common barrier to listening, as it is an automatic process. People cannot handle life without having some assumptions about others and bout products and services in the society. Conflict Management Skills
Conflict is a form of relating or interacting where the sales manager finds himself under some sort of perceived threat to his individual or collective goals. These goals are Impersonal in nature. The process of identifying the nature of the conflict and taking corrective action so that the conflict will not emerge in a similar situation is termed as conflict management.
Model of Conflict Component of Conflict The Conflict Resolution Process
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Methods of Conflict Resolution l Competing: Each party pursues its own interests, regardless of the the concerns conflict. l Accommodating: One party agrees to place the opponents interests above its own.
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l Collaborating: Both parties in a conflict try to satisfy fully l Avoiding: One party withdraws from or suppresses the
something.
Negotiation
Some of the major skills and qualities required by salespeople to be effective in negotiations are: Planning, subject knowledge, listening, patience, communication, intelligence, clear thinking, integrity and trustworthiness.
Style of negotiation
I win, you lose, Both of us win You win, I lose Both of us lose
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Negotiation Skills
Traditionally, price has been the only element of negotiation, but modern-day business has seen the emergence of new elements of negotiation, such as time of contract completion, quality levels and norms for supply of products, volume of goods, responsibility of financing, level and quantity of risk involved and who is responsible for what amount of risk, promotion and title, ownership of intellectual property rights, and level of safely and other norms of maintenance.
Bargaining
Bargaining is defined as a process where at least two parties are involved, the parties have some or one conflict of interest between them, they are at least temporarily joined together in a special kind of voluntary relationship, and the activity in the relationship concerns the division or exchange of one or more.
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Four principles for conducting principled negotiations that have a high probability of succeeding in a negotiation as discussed below
l Separate the people from the problem
l Focus on interests, not on positions l Invent options for mutual gains l Insist on objective criteria
Problem-solving Skills
Besides the negotiation skills described above, one also needs problem-solving skills for effective selling. The relational and consultative selling approach suggests that a salesperson should not be a mere order taker; he should rather act as a problem-solver and a consultant to the customer. There roles are more significant for high-tech selling and business-to-business selling.
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- Subjective reasons
You will need to satisfy both. The objective reasons or rational reasons:
Will this car suit my lifestyle? Will it make me look good in the eyes of my peers or superiors? By buying this car what statement am I making and is that the right one for me? Does this car fit with my role as a director, father, mother, husband, wife etc.
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Buying Decision Process Sales people must understand that household and individual consumers
Buying Situations or Types of Purchases: For household and Individual Consumers - Routine decision-making - Limited decision-making - Extensive decision-making Buying Situations for Business Buyers: - New purchase (or new task) - Change in suppliers (or modified rebuy) - Repeat purchase (or straight rebuy)
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The Sales Process Salespeople perform many activities, which can be broadly grouped into selling activities, and non-selling activities. The selling activities consist of the various steps of the selling process. The non-selling activities include preparation of sales reports,
Approach
Overcoming Objections
Qualifying It is important that the lead, or the probable prospect is qualified (to meet the Necessary standards or conditions to receive further attention). The necessary conditions for the probable prospect or the lead to get qualified to the prospect or potential customer are :
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The probable prospect has a need for the product/service being sold.
The probable prospect (could be an individual, a family, or an organization) can afford (or has an ability) to buy the product / service.
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Preapproach l Information gathering l Planning and sales call - Setting call objectives l Planning the sales strategy This type of modification to selling
markets.
sales sales
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Formula method,
Need-satisfaction method, Team selling method, and Consultative selling method
Ask question
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Compensation
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Trial Close/Closing the Sales Trial close is one of the selling techniques. It check the attitude, or asks the opinion, of the prospect. Trial close does not ask the decision of the prospect to buy. It is used after the sales presentation, after an objection is answered, or before closing the sales. Follow-up and Service Sales Strategy-A Strategic Decision Area Classification of Accounts Relationship Strategy l Transactional relationship l Value-added relationship l Collaborative relationship Selling Methods Channel Strategy-Multi channel 27
Inbound
Outbound
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Quantative Methods: l Moving average method l Exponential smoothing method l Decomposition method -Tends/ cycle/season/e l Ratio method Time Series analysis l Regression analysis Purposes of the Sales Budget l Planning l Co-ordination l Control Method Used for Deciding Sales Expenditure Budget l Percentage of sales method l Executive judgment method l Objective and task method Procedure for preparation of Sales budget- Format, Worksheet , Guidelines and timetable
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RFP e.g. a division of MacDonald HCL serves 3 clients in U.S. & one at australia
Sales person hired as MTs liaison between technical people and off shore sales people
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DMU
Initiator (PM)
DM (Economic Head)
Screen-who decide who is giv access to DMU e.g Purchasing agent or pur. officer
Gate keeper
Buying Criteria Multi attribute matrix sellers have to understand weights & ratings.
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B to B CRM
Retail team organization will . Consumer centre approach Native .. Relationship l Transactional - Product viewed as commodity all information & connect between salesperson and buyer. Established business practices l Facilitation l Integration More trust & cooperation , volume of business but lower of price Deepest relationship Partnering sole selling supplier
Stages of B to B CRM
l Up sell more expensive products to existing buyers l Cross-sell - New products to existing buyer Salespeople need to clearly understand who the Drivers of Demand are ?
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l Management support
l Technology support l Communicating the benefits to sales force
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Sales Territories and time management Salespeople have two fundamental questions to answer in time and
territory management: What is the most efficient use of my time? What is the
most effective way to manage my territory? Salespeople should identify their personal and professional priorities and develop a time management plan. They should also develop a territory management plan and provide territory feedback to management. Salespeople who are good time and territory managers can increase productivity, improve customer relationships, and enhance their
Sales managers have two fundamental tasks to complete in time and territory management. First, they must design the most effective sales territories. The overall success of a salesperson in my territory is based in part on how well management designs the territory. The second major task is measuring the sales performance of the companys product,
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Why time and Territory Management is Important ? Reasons for Salespeople 1. Increase productivity. 2. Improve customer relationships. 3. Enhance personal confidence. Reasons for Sales Managers 1. Ensure territory and customer coverage 2. Minimize sales expenses 3. Assess sales performance 4. Align company policies with customer expectations.
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Measure s.t. performance based on DCR/Invoice/Expense Collections/ Customer & channel feedback Managing Territorial Coverage
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Types of Quota l Sales volume-Rupees sales volume or for unit sales a specified time period. l Profit quotas l Expense quotas l Activity quotas (Input based quota) e.g. general motors set targets by units of Cars/com vehicle sold. e.g. Torrent Pharmaceuticals Sets quota by Rs. volume e.g. a lighting based company such as Phillips set quotas by activity
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Methods of Setting Sales Quota l Quotas base on Sales Forecast and Potential suitable for large organization e.g. TVS Motors/ Stanley l l l l l Quotas based on forecast only past performance future indication Quotas base on past experience Trend projection, add an arbitnary % age. Quotas base on executive judgment Quotas based on sales people judgment Quotas based on compensation
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Advantages of Quota
Threshold goal vs. Actual goal vs. Stretch goal SMART Specific/Measurable/achievable/realistic/Time based * Tight deadline
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How to build up a Sales Organization? Combination and regrouping of product to build up SBus e.g. Dabur. Similar products are put together in a SBU. HUL Use of tele fonf facility field sales force and corporate office leads to decision making.
Marico Industry and P&G. Information and logistics facility exchange to service
rural market.
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Approaches to building up a sales organization Sales organizations helps in achieving target sales, generating data explaining the behaviour of customers, and projecting trends. valuating the performance of the sales staff in similar and different territories across the markets. The traditional sales organizations can take any of the forms that include Geographic- A geographic sales organization is easy to supervise and control and helps in effective coordination portfolio can improve their efficiency by designing the organization on the basis of the product. Product- e.g. Dabur 10 categories Healthcare, Personal Care prod- Hair & oral , Ayurveda specialities, Foods- Juices, RTE products Cosmetics- Samara herbal skincare prod. Customer - Customer specialization improves efficiency by identifying key customer segments and avoiding the duplication of efforts.
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S.M. Wholesales
S.M. Retail
Combinational design for effective sales management. For complex products needing more attention than mere selling, such as service and training to the customer, organizations can be designed on the basis of the function. The sales staff are divided as initial contact people and sales service providers. There is a high demand for serving customers at low cost. This has led the organizations to look for alternative designs for building efficient organizations and applying the emerging information technology for selling. So we find the Emergence of telemarketing for prospecting and the dissemination of product and support service information. Team-based selling also helps in providing adequate information to the customers rather than selling by individual salesperson. Organizations are building sales teams from various cross-functional areas for better customer handling and relationship building. 55
Organizing the number of members of a Sales Force : The Size of Sales Force Break down Method Based on S.F. Total workload Workload Method Amount of work by each SP. Additional work responsibilty Geography/ Territory based Structure - FMCG product companies Product based Structure e.g. General Electric e.g. ABB
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Develop and apply selection procedures to evaluate applicants. l Application blanks. l Interviews l Reference checks l Formal tests.
Therefore, the recruitment process should begin with a thorough analysis of the job, a job description, an a statement of the qualifications for a new hire.
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Attrition is the biggest challenge for high growth industry. Risk taking Empower people young- global leader. Customer connect but before that there has to be ab employee connect Sunrise Sector Retail, Real Estate, Telecom, Pharma Hospitals, Financial Services, IT & ITES Day Zero Companies like Infosys & Cognizant hire 500 1000 people at campuses The challenge for HR is How does a company become an aspirational brand in the job market. Professionalism Environment enabling them to realize their potential. Freedom to work & Innovation Best method of Recruitment WOM & Referrals (upto 30% employees is benchmark) e.g. Marriot Hotels everyone is an associate and not an employee
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Consumer Orientation Finance & Mfg. people are encouraged to got to the market/consumer homes for better insight. Leadership oriented program for young manager and a strong bottom up feedback mechanism. e.g. Johnson & Johnson Understanding Modern trade Implication for skin care products Sending people WalMart, U.S.A Training at Australian Unit
Source of External Recruitment - Industry with work experience l Customer l Supplier l Competitor - Campuses of educational institutions - Low cost recruitment, Specified time period - Employment Exchange Database made available by Placement Consultant. - Placement consultant- Performance Guarantee - Networking referrals Friend/Family/Social Network - Web consultants Accessibility, Wide choice - Walk ins Screening at Convenient locations - Response to ad Classified & Display ad. Large no. of non desirable candidates.
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Selection Selection is the process that determines whether or not the applicant meets
the qualification for the job and it selects the candidate who is most suitable
for a given job. There is a need for clearly spelt company norms regarding whatis acceptable & what is not. Good Selection Good impression on buyers/ customers/channels Wrong Selection Friction within organization, loss of reputation, spoil the jobs in hand.
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Selection Procedures
l Application
- Situational Analysis
- Job knowledge - Job requirement
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Interview Techniques I.) Structured - Job related Valid predictor for job performance Point are awarded for correct answer
Appointment Issuance of a letter which spells out probationary period and rights after confirmation. Initial Orientation Formal orientation program organization related and job related information given to the new recruits. Policies, procedures, roles Socialization Process of Introduction to work environment, territory, chain of command, sales structure, goals.
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